This study investigates how teachers in Swedish secondary school’s address Islam in their religious education and the strategies they employ to navigate challenges related to stereotypes and preconceived notions. Drawing on interviews with six teachers, three from multicultural school environments and three from non-multicultural schools, the research reveals significant differences in teaching approaches based on school context. In multicultural schools, teachers actively incorporate the cultural and religious diversity of their students into the classroom, using these experiences to promote intercultural dialogue, mutual understanding, and critical reflection. By emphasizing commonalities between religions, they foster inclusivity and tolerance while encouraging students to challenge stereotypes. These teachers also address the diversity within Islam itself, highlighting variations in practice and belief systems to provide a nuanced understanding of the religion. In contrast, teachers in non-multicultural schools face unique challenges due to students ’limited exposure to cultural and religious diversity. Preconceived notions about Islam, often shaped by media portrayals, dominate the classroom discussions. To counteract these stereotypes, teachers adopt structured and fact-based methods, focusing on presenting accurate information and encouraging students to critically evaluate their own beliefs and assumptions. The lack of direct student experiences with religious or cultural diversity makes this work particularly demanding. The findings are analysed using Edward Said’s Orientalism, which illuminates how Islam is often constructed as “the other” in Western narratives, as well as theories of interculturality, which stress the potential of diversity to build bridges between different cultural groups. The study highlights the pivotal role of teachers in shaping students’ understanding of Islam and fostering respect for diversity. It emphasizes the importance of tailoring pedagogical approaches to specific school contexts and integrating critical media literacy into education to challenge stereotypes and promote inclusive learning environments.